Hydroxyl-terminated liquid polymers containing ester groups are known in the art. For example, U.S. Pat. Nos. 3,551,472 and 3,699,153 disclose such polymers made by reacting carboxyl-terminated liquid polymers with a diol in the presence of an acid catalyst, and U.S. Pat. No. 3,712,916 discloses such polymers made by reacting a carboxyl-terminated liquid polymer with ethylene oxide in the presence of a tertiary amine catalyst. Ester groups present near the terminal portions of such polymers are rather prone to hydrolytic degradation and may reduce the useful life of products in which the polymers are used. New hydroxyl-terminated liquid polymers are desired having improved hydrolytic stability.